Cabana Capitals Blog Forex Broker NZD /CAD : A head and shoulder pattern suggesting to sell the pair.

NZD /CAD : A head and shoulder pattern suggesting to sell the pair.

NZD /CAD : A head and shoulder pattern suggesting to sell the pair. post thumbnail image

Overview: By looking at the 4 hourly charts we can see that bears are set on the sell-side. The market is going downside. From a technical perspective, bears are making the head and shoulder pattern where the neckline is lying at level 0.87466. The bears are taking the negative momentum in the market below the level of 0.8746 . The pair is heading towards making lower lows and lower highs. Presently bears are leading and playing at the front foot breaking the support level 0.8746. The day range is between 0.8728-0.8758.

Technical Analysis: From the technical perspective we can see that the pair is trading and heading at the south side as a downtrend line is lying and followed by an aggressive downtrend line. The way bears are reacting they are receiving an aggressive downside. The market is making a death crossover, as the  50 SMA  is crossing the 200 SMA from the below which makes is strong sell signals. The way bears are reacting they are receiving the supply pressure from all the major and minor EMA lines. So, we keep our eye on the bearish view and set on the sell-side in the market. Odds are in favor of the bears further and we will get the further bearishness in these pairs.

The RSI is below the 50 levels which are favoring the bears A bearish crossover on MACD indicator is showing the weakness in the pair. The 0.8753 is the key resistance level followed by 0.8756. The 0.8680 level is a key support level followed by 0.8630 level.


Trade idea: From the above statement we can conclude that sell at 0.8753 targets at 0.8650 ,0.8600 and stop loss is 0.8810


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